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Shelagh Hohm AIS Director Paul Sorenson Vice Provost Information Technology

Shelagh Hohm AIS Director Paul Sorenson Vice Provost Information Technology. Outsourcing Administrative Information Systems: Jumping the Chasm. Why is outsourcing so hard?.

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Shelagh Hohm AIS Director Paul Sorenson Vice Provost Information Technology

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  1. Shelagh Hohm AIS Director Paul Sorenson Vice Provost Information Technology Outsourcing Administrative Information Systems: Jumping the Chasm CANHEIT | On the EDGE | June 15-18, 2008 | University of Calgary

  2. Why is outsourcing so hard? “There’s no debate about it. Outsourcing is difficult. The failure rate of outsourcing relationships remains high. Depending on whom you ask, it can be anywhere from 40 to 70 percent. At the heart of the problem is the inherent conflict of interest in any outsourcing arrangement. The client is seeking to get better service, often at lower costs, than it would get by doing the work themselves. The vendor, however, wants to make a profit. That tension must be managed closely in order to ensure a successful outcome for both client and vendor.” Lalit Sachdeva from CIO (www.cio.com)

  3. What’s with the Chasm? • Outsourcing • lowering costs • cost control • strategic - redirecting energies and focusing competencies • efficiencies in labor, capital, IT, resources • >contract mngt • In-House • control • “unique” needs • retained expertise • cost effective • > project mngt Valley of Despair • Academia • cultural • conservative • not profit motivated tri0059 Image Zoo Royalty Free Photograph

  4. Agenda Agenda • Production Services • Governance Structure • Development Services • Global Resources • Lessons Learned • Q & A

  5. University of Alberta PeopleSoft Environment

  6. Production Services IBM Global Services 2nd five year term until June 30, 2010 • Application Management • Hardware Acquisition and Support • Help Desk Services • Change Order Requests • Security Management • PeopleSoft patches and fixes • Performance Tuning • Database Administration • Peoplesoft upgrades

  7. Figure 2.1 – Administrative Systems Decision Making Structure Provost Strategic Arm – Administrative Systems Owners Tactical Arm – Administrative Systems Providers Vice Provost IT & Vice President F&A AIS Deans Council Joint Operations Group AIS Security Group AIS Steering Committee Executive General Faculties Council Customer Provider Central Units AIS AIS Steering Committee Students Faculties AIS Direction, Strategy, Priorities Academic Objectives IBM Production NDS Development n x Ad Hoc Teams & Committees (e.g. Upgrade) n x Development Project Teams LEGEND A relationship between groups or individuals that involves fundamental elements of monitoring and control User Working Groups Finance COR Working Groups HR COR Working Group Student COR Working Group A relationship between groups or individuals that involves less complex exchanges of information

  8. Committee Structure • Production Committee (JOG) • Development Committees (AISSC & Exec) • Change Order Committees • Security Committee • Project Based Steering Committees

  9. AISSC & AISSC Executive • Development Committees • Annual Development Planning Process • Establish priorities for new development • Act as escalation point for project issues • Provide broad based input into project decisions

  10. Development Services • Preferred development vendors Sierra Systems IBM Global Services Ciber • Confirmed Annual Development Budget • New Development Methodology • Standard RFP template • Quality Measures • Standard Reporting • University Provided Project Steward • Vendor Project Manager • IBM manages development environments

  11. Development Plan

  12. Global Resources • University Upgrade to Campus Solutions/Human Capital Management 9.0 • Visit to India: January 2008 • Contractual considerations • Ensure responsibilities are clearly identified in contract • Prepare a detailed Privacy Impact Assessment • Ensure you have a Data Classification plan and implement that plan • Audit requirements – SAS70 • Include audit, privacy and legal advisors in contract, security policy and decision making

  13. Global Resources • Experiences • Landed resource from India as Team Lead • Time differences • Mainly technical resources • Requirements need to be very clear • Tasks take longer but quality high and rates are better • Overall experience still being evaluated ...

  14. Outsourcing Lessons Learned • Contract Management is critical • Retain business analysts and ensure staff are highly skilled • University needs to be responsible for vision and planning • Single vendor for new development did not work • Ensure responsibilities are clearly identified in contract • Do not outsource all responsibility for security & training • Project management and change management are key to successful development projects • Hardware, firewall, system administration, hardware administration outsourcing are most effective

  15. “Backsourcing” In-House Outsource Valley of Despair The key has been running in-house IT like an outsourcer. "[We’re] a very lean organization capable of achieving the best value for our money,”Cecilia Claudio took over as CIO of Anthem Blue Cross and Blue Shield in 1996 [www.cio.com]

  16. Questions & Answers

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